New Jersey will pull forward its clean electricity goal by 15 years and seek to electrify 10% of the state's building stock by 2030, Gov. Phil Murphy said Feb. 15.

The state will pursue the new goals alongside an investigation into the future of natural gas utilities and new programs to support electric vehicles, Murphy said in a speech at Rutgers University in New Brunswick, N.J. Taken together, the goals and initiatives represented a step change in New Jersey climate policy informed in part by new federal climate policy and incentives.

"These bold targets and carefully crafted initiatives signal our unequivocal commitment to swift and concrete climate action today," Murphy said in a news release. "Combined with our federal partnerships reinforced through the Inflation Reduction Act, these comprehensive initiatives will better protect and prepare every New Jersey community, including those on the front lines of climate change who have previously been left out and left behind."

Murphy made the announcement just weeks after his administration pushed back public hearings for the state's triennial review of its Energy Master Plan, or EMP. The state instead plans to release a new EMP in 2024 that will "reflect New Jersey's updated climate goals and the impacts of recent state and federal policies," Murphy said in a Jan. 20 news release.

Through Murphy's Executive Order No. 315, New Jersey aims to have 100% of electricity sold in the state be sourced from clean and renewable energy by Jan. 1, 2035.

The current iteration of New Jersey's EMP aimed to achieve the 100% benchmark by 2050, including 7,500 MW of offshore wind generation by 2035. With 4 GW of solar power solidified as of July 2022, the state has already surpassed its goal to have 3.75 GW of new solar generation by 2026.

Pursuing the 2035 target along with federal benefits embedded in the Inflation Reduction Act, New Jersey expects to see $355 million in annual savings and a reduction of 5.5 million metric tons of greenhouse gas emissions per year by 2030, according to the governor's order.

State pursues building electrification

Executive Order No. 316 declared that the state's policy is "to advance the electrification of commercial and residential buildings." Commercial and residential buildings are the second-largest source of New Jersey's greenhouse gas emissions, Murphy said in his speech. Nearly 90% of homes and more than 80% of businesses rely on fossil fuels for heating, he said.

The order set an initial target of installing zero-emissions space heating and cooling systems, including electric heat pumps, in 400,000 residences and 20,000 commercial properties by Dec. 31, 2030. By that date, the state will also endeavor to prepare 10% of the state's low- to moderate-income residential units for future electrification.

The state will seek to electrify space conditioning in both new construction and existing buildings. Murphy directed the Office of Climate Action and the Green Economy to release a strategic road map to building decarbonization by March 2024.

To date, the administration has not taken decisive steps toward electrifying buildings; in December 2022, it shelved a proposed rule that would have prohibited many commercial and industrial facilities from installing fossil fuel boilers.

Regulators to investigate future of gas utilities

In a third executive order, No. 317, Murphy directed the New Jersey Board of Public Utilities, or BPU, to open a proceeding to plan for the future of gas utilities in the state, a step several other states have taken.

The proceeding will lay the groundwork for gas utilities to create plans to cut sector emissions to levels consistent with the state's goal of reducing statewide greenhouse gas emissions by 50% below 2006 levels by 2030.

Within 18 months, the BPU will have to summarize the proceeding's findings and develop recommendations to advance emissions reductions while minimizing cost impacts to ratepayers.

Murphy directed the BPU to consider implementing a clean heat standard and eliminating subsidies that encourage gas infrastructure investment. The BPU must also assess the electric grid's capacity to accommodate heating electrification and explore strategies for maintaining reliable gas service, ensuring the long-term viability of gas utilities, and providing new revenue streams for the companies.

New support for EVs

Murphy also announced two state initiatives centered around transitioning to electric vehicles. "We are investing heavily in electric vehicle infrastructure and helping get more EVs on the road through highly successful incentive programs," Murphy said at Rutgers.

New Jersey will start the process of adopting the Advanced Clean Cars II program, designed by the California Air Resources Board. The Golden State initiative mandates phasing out the sale of new gasoline-powered passenger cars and trucks in the state by 2035. The program also outlines regulations for manufacturers to reduce emissions from the transportation sector while simultaneously pivoting more of its production to light-duty zero-emission vehicles.

The state is also allocating $70 million from its Regional Greenhouse Gas Initiative funds to establish an incentive program, helping consumers with the upfront costs of switching to a zero-emission vehicle.

The administration also plans to advance the next round of climate resiliency rule proposals to build on a previous package of regulations known as Protecting Against Climate Change, or NJ PACT.

The new package, dubbed NJ PACT Resilient Environment and Landscapes will address coastal flood zone requirements as well as federal concerns about the consistency of current state rules with the National Flood Insurance Program. NJ PACT Resilient Environment and Landscapes will also embrace nature-based solutions to support New Jersey's resilience goals, facilitate responsible development of its renewable energy infrastructure and improve the state's environmental permitting processes, Murphy said.

"It's time to change our mindset from simply being 'Stronger than the Storm' to being 'Smarter than the Storm,'" he said.

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